United Kingdom grew 0.4% in July, exceeding market expectations

The United Kingdom recorded a 0.4% growth in its Gross Domestic Product (GDP) in July, surpassing market projections that anticipated stagnation. This advance was driven by the services sector, particularly by computer programming related to artificial intelligence. This data comes after a contraction of 0.1% in April, no growth in May, and an expansion of 0.3% in June. Richard Carter from Quilter Cheviot highlighted that the British economy defied expectations, benefiting from warm weather and the performance of the English team in the World Cup. Markets are now focusing on the budget that Finance Minister John Healey will present on October 28. Healey reaffirmed fiscal discipline as a priority, seeking to reassure investors amid rising borrowing costs. The budget is highly anticipated by the public and the business sector, amid speculation about possible tax reliefs and tax increases. Healey also mentioned the need to control public spending in a context of high debt levels and a resurgence of inflation fueled by the conflict in the Middle East.